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Top Stories
GM, Ford Scale Back Car Leases as Era Ends
July Auto Sales Expected to Keep Downward Trend
VW Passes Ford for No. 3 in First-Half Global Sales
Resale Values of Trucks, SUVs Fall
Auto Dealer Donates CPR Dummies
NADA Update
NADA Convention Registration Now Open
New Executive Education Class Forming at Babson College
NADA Publication Provides Guidance on New FTC 'Red Flags Rule'
NADA Management Education Video Helps Dealers Create Special Finance Operations
Save on HP Printers and Notebooks
Top Stories
GM, Ford Scale Back Car Leases as Era Ends

Detroit's money troubles are starting to put a key part of the American dream -- a pricey new car -- out of reach for some people. Squeezed by falling used-vehicle prices, as well as continued tumult in the credit markets on Wall Street, Ford Motor Co. and General Motors Corp. are significantly scaling back their auto-leasing business. Ford on Tuesday began telling dealers that it is essentially ending leasing deals on most trucks and sport-utility vehicles. GMAC LLC, GM's financing arm, is also expected to rein in leasing offers in the U.S. soon, possibly this week, people familiar with the matter said. On Tuesday, it said it will no longer offer subsidized leases in Canada. Chrysler last week said it is ending all leasing deals in the U.S. Leases at the Big Three auto makers account for about 20 percent of their total new-vehicle business, according to Automotive Lease Guide.
Source: The Wall Street Journal

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July Auto Sales Expected to Keep Downward Trend

DETROIT -- Take automakers' inability to finance leases, combined with gas prices, the weak economy and other problems facing the industry, and you have the makings of what could be one of the worst months for auto sales in more than 15 years. Auto companies report their U.S. sales for July on Friday, and the results are expected to continue the downward trend that has plagued the industry all year. Auto consulting company J.D. Power and Associates predicts the industry will see its worst July since 1992, with little chance for a recovery in the next 12 months. That forecast is shared across the industry. Jesse Toprak, the chief economist for ... Edmunds.com, predicts industry sales will tumble 3.3 percent in July from a year earlier, and that Honda Motor Co. will be the only major automaker reporting a sales increase thanks to its stable of small, fuel-efficient cars. Honda could even overtake Ford as the second-largest carmaker by U.S. sales behind General Motors Corp.
Source: Associated Press

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VW Passes Ford for No. 3 in First-Half Global Sales

Volkswagen AG moved ahead of Ford Motor Co. to become the world's third-largest automaker by vehicle sales in this year's first half, as the U.S. company declined in its home market. Volkswagen reported a 7.2 percent increase to 3.31 million cars and trucks, while ... Ford said its sales fell 11 percent to 3.09 million. Ford is headed for another decline in the annual global sales rankings, after yielding the No. 2 spot to Toyota Motor Corp. in 2003. Ford's U.S. sales fell 14 percent as gasoline prices rose above $4 a gallon, crimping demand for large pickup trucks and sport-utility vehicles. Its figures also exclude Jaguar and Land Rover, sold to Tata Motors Ltd. in June. Volkswagen ... cited growth in China, India, Brazil, Russia and Ukraine for its increase. Ford under Chief Executive Officer Alan Mulally is trying to end losses and has de-emphasized sales rankings. The company has lost a total of $23.9 billion since 2005, the last year it posted a full-year profit. Ford last week said it would add more small cars to help reduce its dependence on large pickups and SUVs.
Source: Bloomberg

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Resale Values of Trucks, SUVs Fall

NEW YORK -- Wholesale prices of used trucks and SUVs have dropped significantly in recent months, according to data released Wednesday by the National Automobile Dealers Association's Used Car Guide. Prices of used pickup trucks tumbled 11.2 percent during the second quarter, while prices of used SUVs fell 9.6 percent, the group said. At the same time, prices of passenger cars rose 3.5 percent, boosted by strong demand for compact and midsize models, the NADA said. All of the NADA data refers to vehicles between one and five years old. The NADA also attributed the changes to rising fuel costs, saying that for every $1 increase in the cost of a gallon of gas, large pickups decline in value by an average of $2,200, while resale prices of compact cars rise by an estimated $980. The group added that the effects of high gas prices have become a long-term depreciation trend, and as a result, it is making "fairly aggressive" devaluations of trucks and SUVs through the end of the year.
Source: Associated Press

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Auto Dealer Donates CPR Dummies

The American Red Cross hopes to train at least 2,000 citizens of Alamance County [Burlington, N.C.] on what to do when a person has a heart attack or requires CPR. The CPR training program was greatly enhanced when the National Automobile Dealers Charitable Foundation and Greg Westcott with Westcott Buick presented Resusci Anne training units to the Piedmont Carolina Chapter's CPR training program [last] week. These Resusci Anne training units are mannequins that are essential to providing adult, child and infant CPR. "The Red Cross does not receive government funding and relies totally on donations and training revenue," according to a news release.
Source: The Times-News (Burlington, N.C.)

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NADA Update
NADA Convention Registration Now Open

 

New Orleans is back – the site of the 2009 NADA Convention & Exposition January 24-27. And the Big Easy is ready for dealers to return. "The heart and the core of New Orleans, its commercial and its cultural core and its tourism and hospitality industry looks better than it did before the storm," says Stephen Perry, president and CEO, New Orleans Convention and Visitors Bureau. The NADA convention committee recently met in New Orleans to see firsthand the city's progress. "New Orleans is definitely ready for the dealers to come back," says Annette Sykora, NADA chairman.

Convention registration is now open. In recognition of tough economic times, registration fees and hotel rates have remained unchanged, and discounted airfare is available. More than 700 exhibitors, 150 dealer workshops, a heavy-weight lineup of speakers and an additional half-day of workshops, including "Lifeline to Profit$" (offered both Friday and Tuesday), are slated for the NADA convention.

In 2007, New Orleans hosted 7.1 million visitors. Since Hurricane Katrina, $700 million has been invested in new hotel renovations. More restaurants (913) are open in the city today than before Katrina. And the French Quarter is cleaner than ever. "It's amazing how clean the French Quarter is," Sykora says.

The theme of the NADA convention is "Committed to Community." Putting the theme into action, the NADA Charitable Foundation contributed $400,000 in May to the Brees Dream Foundation (founded by Drew Brees, New Orleans Saints quarterback) to complete the restoration of the athletic fields at Lusher High School, the city's largest public high school.

New Orleans has been a favorite NADA convention city for more than 30 years. The cultural experience of New Orleans continues to flourish, as it has for centuries. The city is the birthplace of jazz and the place of some of the world’s most popular musicians – from Louis Armstrong to Lenny Kravitz.

The most celebrated and historic core of the city – including the French Quarter, Faubourg Marigny, Central Business District, Warehouse and Arts District, Magazine Street, Garden District, Audubon Park and Zoo and St. Charles Avenue – is thriving. "From the time you enter the city, you can see that everything has been revitalized," says Jeff Carlson, chairman of the NADA convention committee.

Click here to register online or for more information.

 Click here for the video that shows just how much progress New Orleans has made since Katrina.

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New Executive Education Class Forming at Babson College

Applications for a new Dealer Executive Education class scheduled to begin in January 2009 at Babson College are due October 1. For those applications received on or before September 1st, the $600 application fee may be applied toward the initial installment payment for tuition and fees.

Babson is the  preeminent provider of entrepreneurial executive education training in the United States. It has been ranked No. 1 in entrepreneurship for 13 consecutive years  by U.S. News & World Report. The customized six-module program focuses on leadership, management and entrepreneurship for the retail side of the automotive and truck industry. All six week-long classes are being held on campus at the Babson Executive Education Center over a 16-month period. "Ideal candidates for the program are individuals who are in a position to effect change within the dealership," says Allan Jones, director of the  NADA dealer academy. "This is a lot more than just changing your dealership. This is about making myself a better leader," said executive education student Jared Hamilton of Henry Day Ford in Sandy, Utah.

Visit www.DealerExecEd.org to enroll and find out more about the program or contact Dealer Academy Director Allan Jones at (703) 821-7210 or ajones@nada.org.

  Click here to view a brief video on the program.

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NADA Publication Provides Guidance on New FTC 'Red Flags Rule'

McLEAN, Va. — In response to the Federal Trade Commission (FTC)’s new Red Flags Rule — under which most dealers and other creditors must develop and implement a comprehensive Identity Theft Prevention Program by November 1 — NADA Management Education has released a new guide to assist with U.S. dealer compliance.

A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft (L50) explains the requirements under the Rule, and includes detailed, step-by-step guidance on developing the written program required under the Red Flags Rule, as well as a sample written program, worksheets and other helpful materials. All members will soon receive one free copy of the full guide in the mail. The sample written program is also being made available to members — free upon request, subject to terms and conditions — as a Word document to aid dealers in developing written programs specific to their dealerships in advance of the compliance deadline.

To receive these materials, contact me@nada.org with your request and member identification number. Additional copies of the guide, as well as a PDF version, are available to members for $40 each. The guide is also available to nonmembers for $80 each. The guide also will serve as the basis for two virtual seminars on the Red Flags Rule. Register for the seminars, to be held twice — August 26 and September 23 — at www.nada.org/seminars, or call (800) 248-6232, ext. 7061. For further information, visit the NADA Management Education online catalog at www.nada.org/mecatalog or call (703) 821-7227.
Source: NADA Newswire

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NADA Management Education Video Helps Dealers Create Special Finance Operations

In response to a growing special finance market, NADA Management Education has released a new video training program on establishing a special finance department in the dealership. "Creating a Special Finance Operation: Doing it Right" (VT20) illustrates the key steps dealers and managers need to follow in order to build a special finance operation. Video segments—which include advice from experienced managers and dealers—cover staff appointment, the process of selling to the special finance customer, inventory and marketing. An additional case study reveals how one particular dealership succeeded in the special finance market. A 27-page study guide is offered as a companion piece to the DVD. The guide serves as a reference on establishing, running and marketing a special finance department, and includes a special finance quiz. The DVD and study guide are available for $169. Additional information and a four-minute preview are available at www.nada.org/specialfinance. For further inquiries, call NADA Management Education at (703) 821-7227.

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Save on HP Printers and Notebooks

 

NADA members can save $200 on HP Color LaserJet printers CP4005n and CP4005dn. Members can also save $200 on HP Compaq 6515b notebook PCs with broadband wireless service. To take advantage of these savings, visit NADA's PC Purchase Program and click "HP" (member login required).

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Featured Video
 

Click here for the video that shows just how much progress New Orleans has made since Katrina. The NADA convention returns to New Orleans January 24-27.  

More Video Highlights
Quotable
 
"I think (leasing) became the incentive tactic of choice and that got things out of balance."

    -- Earl Hesterberg, president and CEO of Group 1 Automotive, which owns 100 dealerships, The Detroit News, July 30


"There doesn't appear to be any indication that we're going to have a second-half recovery to any great extent."


    -- George Pipas, Ford Motor Co.'s top sales analyst, Associated Press, July 29


"When the U.S. goes south, so does Ford's global position."


    -- Dennis Virag, president of Automotive Consulting Group, Bloomberg, July 29

Video Highlights
 
  
NADA and "SeeMore's Playhouse" Team Up to Promote Child Passenger Safety
NADA's New Orleans Project: Lusher Charter School
NADA's Return to New Orleans
NADA Chief Economist Forecasts a Challenging '08
Click here for more NADA-TV reports.
 
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NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.